Tuesday April 12 Ag News

New Home, New Name for Nebraska’s Longest Running Tractor Ride

When the Washington County Fair Board members discovered that KTIC Radio would no longer be hosting the Great Nebraska Tractor Ride, they knew they couldn’t let the summer event just go away. KTIC’s tractor ride had been an annual event for over a decade, traveling a different route every year. After asking a few questions and having several discussions, it was decided that the fairgrounds in Arlington would be the new “home base” for the popular ride.

“We have almost the perfect set up here to host this event,” says Washington County Fair Board President, Gary Lambrecht. “Plenty of ample parking, an onsite unloading dock, an air-conditioned building for check-in and meals and we’re a just a few miles from hotel facilities in Fremont or Blair. So many guys in our area had attended the ride in the past and we couldn’t let something that embraces agricultural heritage like this just go away. After tossing around a few names we settled on the Eastern Nebraska Tractor Ride. We are excited to keep the tractor ride going, while being able to raise funds to help improve our facilities.”

The tractor ride is a lineup of over 150 antique tractors that will travel rural areas in Washington and Burt Counties. This year’s route will start in Arlington, then onto Fontanelle, Herman, Blair and back to Arlington. Friday June 10th, there will be a welcome meal for riders in the evening. Saturday the 11th tractors will take their trip at approximately 13 miles per hour.

“We’ve made a few changes to the ride, like shortening the ride from two days down to one, but we hope to put on a ride that was comparable to the Tractor Ride that so many riders attended year after year. We are excited to keep the tractor ride going, while being able to raise funds to help improve our facilities,” said Lambrecht.

Registration is now open for the Eastern Nebraska Tractor Ride. Email tractor ride coordinator, Nikki Hagedorn at nikki.j.hagedorn@gmail.com or call 402-372-7175 for the official registration form, sponsorship opportunities or for any questions or requests for additional information on the event.



Peter G. McCornick named next Water for Food Institute executive director

Peter G. McCornick, an internationally known expert in water, food and environmental research, has been named the next executive director of the Robert B. Daugherty Water for Food Institute at the University of Nebraska, NU President Hank Bounds announced today.

McCornick is currently deputy director general for research at the International Water Management Institute in Colombo, Sri Lanka, one of the world's foremost institutions dedicated to improving management of water and land resources to ensure food security and reduce poverty. He will succeed Roberto Lenton, who became WFI's founding executive director in 2012 and has led the institute through early phases of growth and success.

McCornick will assume his new role on Sept. 1.

"There is perhaps no more urgent challenge facing the world today than sustainably feeding the growing global population," Bounds said. "The University of Nebraska, through our Water for Food Institute, is uniquely positioned to lead the way in developing solutions. We are fortunate to have attracted someone with Peter McCornick's reputation and expertise to the executive director position. His deep knowledge of water and agricultural development in global contexts and his strong leadership skills will accelerate the impact the institute is making in ensuring water and food security in Nebraska and around the world."

McCornick said, "Roberto set the stage for the Water for Food Institute's global reach. I appreciate the tremendous work he has done in developing a strong team and growing the institute from an idea to a fully operational research center that is truly making a difference in improving water and food security for generations to come. I look forward to working with the University of Nebraska leaders, faculty and staff, as well as its many partners in the U.S. and internationally, to advance the institute's achievements and impact."

McCornick is among the featured speakers at the 2016 Water for Food Global Conference, which is April 24-26 at Nebraska Innovation Campus in Lincoln. The annual conference, which regularly attracts hundreds of scholars, policy experts, farmers and ranchers, and others from around the world, is a keystone of the institute's efforts to share knowledge and affect change. Registration for this year's event, titled "Catalytic Collaborations: Building Public-Private Partnerships for Water and Food Security," is open until April 18.

In his role at the International Water Management Institute, McCornick has already worked closely with WFI on research projects and events. He was instrumental in developing a Memorandum of Understanding between the two organizations that opened new opportunities for collaboration.

"Peter's familiarity with WFI and how we leverage the university's expertise and extend it through strong international partnerships is a tremendous advantage, as is his extensive experience in agricultural water management both in the U.S. and overseas," Lenton said. "He is well known and respected among international leaders in water, agriculture and the environment, and is ideally placed to help take the institute to even greater levels of success."

Ronnie Green, University of Nebraska-Lincoln chancellor-elect, vice chancellor for the Institute of Agriculture and Natural Resources, and interim senior vice chancellor of academic affairs said, "We had a highly competitive and thorough international search to identify candidates after Roberto announced his planned transition from the position last year. I'm very pleased with the search committee's work in attracting exceptional candidates and identifying Peter as the ideal person to expand the institute's role as a global leader in water and food security through research and policy, education and communication."

McCornick has dedicated his career to improving the understanding of sustainable management of water resources. He has led research and development programs on water, agriculture and the environment in Africa, Asia, the Middle East and the U.S. His areas of interest include water and food security, the water-food-energy nexus, water reuse, irrigation management, and water and climate adaptation. McCornick earned his doctorate degree in agricultural engineering from Colorado State University, is a licensed professional civil engineer in the State of Colorado, a member of the American Academy of Water Resources Engineers, and a senior fellow at Duke University's Nicholas Institute for Environmental Policy Solutions. He has published widely and regularly presents at major international events. McCornick was born in Scotland and grew up on a livestock and dairy farm.

Water for Food Institute Board Chair Jeff Raikes said: "I am grateful for Roberto's leadership as he has built a globally recognized institute for the critical nexus of water productivity and food security. As we started the search process for Roberto's successor, we aspired to find the right individual to take the wheel and guide the institute through its next phase of development. We are very fortunate to have found that leader - Peter McCornick."



Farmer leaders participating in Iowa Soybean Association Experience

Ten farmers from across Iowa are deepening their knowledge of the soybean industry as Iowa Soybean Association (ISA) Experience participants.

They are: LaVerne Arndt, Sac City; Scot Bailey, Anita; Brad Buchanan, Cedar Rapids; Dan Chism, Emmetsburg; Jeff Ellis, Donnellson; Kevin Glanz, Manchester; Kurt Moffitt, Indianola; Greg Rinehart, Boone; Tim Smith, Eagle Grove and Tom Vincent, Perry.

The ISA Experience invites soybean farmers to participate in a four-part professional development program. Throughout the year, participants engage in activities and discussions that enhance their knowledge and understanding of the structure and activities of the ISA and topics vital to affecting the competitiveness of soybean farmers including supply (production), demand, policy and information/communications (including agriculture’s freedom to operate).

"While farming in Iowa isn't a soybean-specific enterprise, this program is tailored to issues impacting soybean production,” said Heather Lilienthal, director of ISA's producer services team. “We've designed this program to help our members understand how their checkoff dollars are being invested, and what programs are developed and distributed. The program also showcases how partnerships with businesses and communities benefit the soybean industry and why their need their involvement and leadership is essential.”

Sponsors of ISA Experience include Beck’s Hybrids and Bunge. Representatives of both companies participate to share timely perspectives and answer questions related to issues directly impacting the competitiveness of farmers and the industry. 

Two sessions have been held including one focused on soybean production that coincided with ISA’s Research Conference. The March session included a discussion of ISA policy priorities and issues.

The next leg of the ISA Experience will take place in June with a focus on international and domestic uses and trade — the work of the ISA Demand Committee. The last session, scheduled for August, will be dedicated to consumer awareness, marketing and membership topics.



NORTHEY HIGHLIGHTS PREPARATIONS FOR AVIAN INFLUENAZA THAT HAVE TAKEN PLACE IN THE LAST YEAR

Iowa Secretary of Agriculture Bill Northey today highlighted the preparations that have taken place by Iowa poultry farmers and by the state and federal governments to better prepare for another potential outbreak of avian influenza.

“As we approach the first anniversary of avian influenza in Iowa it is important to highlight the steps taken by poultry industry and the state and federal government to prepare to respond even more quickly should we see the disease again. The progress that has been made to recover from this devastating animal health emergency and prepare for any future outbreaks is a testament to the resiliency and commitment of our state’s poultry farmers,” Northey said

“Poultry farmers have made significant investments to improve biosecurity to prevent the disease from getting on their farm and are monitoring their birds closely so we catch the disease early should it appear.  In addition, both federal and state governments have updated our disease response plans and are ready to implement them.  If the disease does appear, the poultry industry and state and federal partners all have the goal of having any infected flocks depopulated within 24 hours to help control the disease and limit its spread.  After the outbreak last spring everyone understands that we need to respond more quickly to eliminate the disease on the farm which reduces the chance it can move and infect more birds,” added Northey.

Biosecurity Important for Farmers
Iowa poultry farmers have updated their biosecurity measures and made significant investments to help prevent the disease from getting on their farm.  All poultry farms need to have a biosecurity plan to qualify for USDA indemnification.

It is recommended all livestock premises have an official premises identification number, which may be obtained for free by contacting the Iowa Department of Agriculture and Land Stewardship.  Information on how to obtain premise identification can be found at http://www.iowaagriculture.gov/animalIndustry/premiseIdentificationProgram.asp or by calling the Department toll free at 888-778-7675.

 The Center for Food Security and Public Health, Iowa State University, College of Veterinary Medicine has produced numerous materials to help farmers update biosecurity measures on their farm.  Suggestions include:
-    Establish a line of separation to isolate poultry from potential sources of avian influenza infection.  Follow biosecurity protocols for any person or materials that cross the line.
-    Create a perimeter buffer area as an outer control boundary, set up around the poultry houses to keep vehicles and equipment which have not been cleaned and disinfected and personnel not following biosecurity entry protocols from contaminating areas near the poultry houses.
-    Employees play a very important role in securing the health of birds on a housing site. By following specific biosecurity steps, employees can minimize the risk of bringing avian influenza virus to a site.
-    Pests such as wild birds, rodents, and insects can carry avian influenza (AI) onto a housing site. Biosecurity measures can help keep pests out and ensure the health of the birds on a site.
-    Follow proper cleaning and disinfection protocol for all equipment
-    Dead birds should be disposed of in a manner that prevents the attraction of wild birds, rodents, and other animals and avoids the potential for cross-contamination with birds from other facilities.
-    Manure and spent litter should be removed in a manner to prevent exposure of susceptible poultry (either on or off the farm of origin) to avian influenza virus.

Planning Ongoing
In addition to the work by poultry farmers, state and federal partners have taken numerous steps to learn from the incident last year and prepare for any future outbreaks.

The Iowa response to Avian Influenza operates under a Unified Command involving the Iowa Department of Agriculture and Land Stewardship (IDALS) and USDA Animal and Plant Health Inspection Service (APHIS) Veterinary Services.  We also work closely with partners in the Poultry industry as well as other state agencies, including the Iowa Department of Homeland Security and Emergency Management, Iowa Department of Public Health, Iowa Department of Natural Resources

Planning steps that have been taken include:
-    Following the outbreak last year, both agencies participated in after action reviews to evaluate the response and identify areas for improvement.
-    Both IDALS and USDA APHIS have committed to depopulating affected birds within 24-hours to reduce the amount of virus in the environment and minimize the risk of the disease spreading to and killing other birds.
-    IDALS has met with Iowa Turkey Federation, representatives from Tyson and West Liberty Foods, and ISU Extension several times to discuss biosecurity preparedness, composting protocols, and other proactive policies for improving readiness.
-    IDALS, in conjunction with Iowa DNR and Iowa State University Extension and Outreach, have created guidance document for poultry premises to assist in preparedness and planning for avian influenza.
-    Convened meetings with individual livestock groups to discuss animal health emergency planning and revising and updating the statewide Foreign Animal Disease (FAD) plan.



ASA and 26 State Soybean Affiliates Urge Congress to Back TPP

In a bipartisan letter to House and Senate leadership Monday, the American Soybean Association (ASA) and its 26 state and regional affiliates, along with more than 200 other farm and food groups, urged lawmakers to support the Trans-Pacific Partnership (TPP). The groups encouraged Congress to continue its work to approve the TPP in 2016.

“If faithfully implemented, TPP will help level the playing field for U.S. exports and create new opportunities for us in the highly competitive Asia-Pacific region,” wrote the groups. “The TPP is critical to the livelihood of the U.S. food and agriculture sector because it will create conditions that encourage economic growth and increased employment in rural areas and throughout the supply chain.”

ASA is a leader on trade issues, as soybeans are the nation’s top agricultural export. Soybeans also see significant benefits from international trade in the form of increases in exported meats—particularly pork and chicken—from livestock that requires soybean meal as feed.

“Exports are fundamental to the success of the agricultural industry because 95 percent of the world’s consumers live outside of the United States and 20 percent of U.S. farm income is from exports,” said the groups in the letter. “According to the American Farm Bureau Federation, TPP will boost annual net farm income in the United States by $4.4 billion.”

ASA represents soybean farmers nationwide, and has state affiliates in Alabama, Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New York, North Carolina, North Dakota, Oklahoma, Ohio, South Carolina, South Dakota, Tennessee, Texas, Virginia and Wisconsin, as well as regional affiliates representing the Mid-Atlantic and Georgia/Florida.



 CHS reports fiscal 2016 six-month earnings of $235.5 million

CHS Inc., the nation's leading farmer-owned cooperative and a global energy, grains and foods company, today reported net income of $235.5 million for the first six months of its 2016 fiscal year.

CHS net income of $235.5 million for the period from Sept.1, 2015 through Feb. 29, 2016, reflected a 50 percent decline from net income of $471.5 million for the first six months of fiscal 2015. The lower earnings were attributed to the down economic cycles in the agricultural and energy sectors, which have resulted in reduced commodity prices and lower margins globally. These have combined to significantly reduce CHS profitability. Revenues through Feb. 29, 2016, were $14.4 billion, down nearly 20 percent from $17.9 billion for first half of fiscal 2015, and primarily reflected lower selling prices for the energy, grain and fertilizer products the company handles.

"Like others in our energy and agricultural space, CHS is experiencing the earnings impact of depressed global prices and reduced demand for refined fuels, grain and fertilizer," said CHS President and Chief Executive Officer Carl Casale. "We've experienced these types of cycles throughout our more than 85-year history and will navigate this period by finding ways to run our businesses more efficiently and effectively while continuing to serve our owners' and customers' needs."

For the second quarter of fiscal 2016 (Dec. 1, 2015 through Feb. 29, 2016), CHS reported a net loss of $31.0 million compared with earnings of $92.8 million for the same period in fiscal 2015. Results for the quarter also were attributed to the current down cycle in the company's agricultural and energy businesses. Revenues for the second quarter of fiscal 2016 were $6.7 billion, down 20 percent compared with $8.4 billion for the second quarter of fiscal 2015.

Through the first six months of fiscal 2016, operating income reflected lower pre-tax earnings in the CHS Energy and Ag segments. These were partially offset by increased earnings in the Corporate and Other category, as well as the addition of the company's new Nitrogen Production segment.

In addition to significantly reduced refining margins, CHS Energy segment earnings for the first six months of fiscal 2016 included a significant non-cash charge to revalue inventories to market value. The company's lubricants and transportation businesses also experienced lower earnings for the six-month period, while propane earnings increased.

Year-over-year earnings also declined within the CHS Ag segment, which includes the company's crop nutrients, renewable fuels, Country Operations retail, animal nutrition and sunflower processing; grain marketing, and processing and food ingredients businesses. Lower earnings in this segment were largely attributed to soft market conditions across the agricultural sectors CHS serves. Lower margins affected earnings within the crop nutrients, Country Operations retail and grain marketing businesses. In the renewable fuels business, earnings declined primarily due to lower market prices. CHS processing and food ingredients earnings decreased primarily due to a non-cash impairment charge on assets held for sale.

With one month of operation in fiscal 2016, CHS generated income before taxes in its newly established Nitrogen Production segment of $1.3 million, resulting from its February 2016 equity method investment of $2.8 billion in CF Industries Nitrogen, LLC.

CHS reports results for its business services operations and its two food processing-related joint ventures under the Corporate and Other category. Corporate and Other earnings for the first six months of fiscal 2016 increased over the previous year primarily due to higher earnings associated with the company's investment in Ventura Foods, LLC, a manufacturer, packager and distributor of vegetable oil-based food products.



Farm Bureau Asks Senate Subcommittee to Rein in Out-of-Control EPA

Congress should hold the Environmental Protection Agency accountable for its repeated violations of open government laws, American Farm Bureau Federation board member and Oklahoma Farm Bureau President Tom Buchanan told a Senate subcommittee today.

Buchanan testified before the Senate Subcommittee on Superfund, Waste Management and Regulatory Oversight nearly a year after the conclusion of the EPA’s flawed Waters of the United States rulemaking process. The agency came under fire then for acting as a vocal and highly politicized advocate for its proposal, rather than as a fair broker that would weigh all public comments impartially. The Government Accountability Office ultimately found EPA had violated the law by pushing “covert propaganda” on an unsuspecting public to gin up support for its own actions.

Buchanan highlighted EPA’s anti-farmer war of words: “That campaign consisted almost entirely of non-substantive platitudes about the importance of clean water – which no one disputes. It used simplistic blogs, tweets and YouTube videos to generate purported ‘support’ for the rule among well-intended people who have absolutely no idea of what the rule would actually do or what it will cost,” Buchanan said. “Regardless of whether you supported, opposed or never heard of the waters rule, I hope many of you would agree that this is not how rulemaking should be conducted.”



EIA Increases Ethanol Forecasts for 2016

 In its latest Short-term Energy Outlook released Tuesday, the Energy Information Administration again revised higher its 2016 forecast for both ethanol production and demand.

EIA said ethanol production averaged an estimated 966,000 bpd in 2015, and is forecast to average between 970,000 bpd and 980,000 bpd in 2016 and 2017. This compares with last month's estimate at "slightly more" than the 2015 average.

The agency repeated that ethanol consumption in 2015 averaged 910,000 bpd, while increasing its forecast for 2016 and 2017 to about 930,000 bpd versus 920,000 bpd a month ago.

"This level of consumption results in the ethanol share of the total gasoline pool averaging 10% in both 2016 and 2017. EIA does not expect significant increases in E15 or E85 consumption over the forecast period."

The U.S. Environmental Protection Agency on Nov. 30, 2015, finalized a rule setting Renewable Fuel Standard volumes for 2014 through 2016. EIA used these finalized volumes to develop the current STEO and assumes the 2016 targets for 2017, except the biomass-based diesel 2017 target of 2.0 billion gallons, which was included in the Nov. 30 rule.

EIA continues to expect the largest effect of the proposed RFS targets would be for biodiesel consumption, which helps to meet the RFS targets for use of biomass-based diesel, advanced biofuel and total renewable fuel. Biodiesel production averaged 82,000 bpd in 2015 and is forecast to average 100,000 bpd this year, down 6,000 bpd from last month's estimate. In 2017, the estimate is 106,000 bpd, also down 6,000 bpd from a month ago. Net imports of biomass-based diesel are also expected to increase from 29,000 bpd in 2015 to 45,000 bpd in 2016 and 47,000 bpd in 2017.

The agency estimates that energy-related emissions of carbon dioxide decreased by about 2.5% in 2015. Emissions are forecast to decrease by 0.9% in 2016 and then increase by 0.9% in 2017. These forecasts are sensitive to assumptions about weather and economic growth.



USDA Expands Safety-Net for Dairy Operations Adding Next-Generation Family Members

Agriculture Secretary Tom Vilsack today announced that dairy farms participating in the Margin Protection Program (MPP) can now update their production history when an eligible family member joins the operation. The voluntary program, established by the 2014 Farm Bill, protects participating dairy producers when the margin – the difference between the price of milk and feed costs – falls below levels of protection selected by the applicant.

"This change not only helps to strengthen a family dairy operation, it also helps new dairy farmers get started in the family business, while ensuring that safety net coverage remains available for these growing farms," said Secretary Vilsack. "When children, grandchildren or their spouses become part of a dairy operation that is enrolled in MPP, the production from the dairy cows they bring with them into the business can now be protected. By strengthening the farm safety net, expanding credit options and growing domestic and foreign markets, USDA is committed to helping American farming operations remain successful."

The U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) published a final rule which makes these changes effective on April 13, 2016. Any dairy operation already enrolled in the Margin Protection Program that had an intergenerational transfer occur will have an opportunity to increase the dairy operations production history during the 2017 registration and annual coverage election period. The next election period begins on July 1, 2016, and ends on Sept. 30, 2016. For intergenerational transfers occurring on or after July 1, 2016, notification must be made to the FSA within 60 days of purchasing the additional cows. Each participating dairy operation is authorized one intergenerational transfer at any time of its choosing until 2018.

For $100 a year, dairy producers can receive basic catastrophic protection that covers 90 percent of milk production at a $4 margin coverage level. For additional premiums, operations can protect 25 to 90 percent of production history with margin coverage levels from $4.50 to $8, in 50 cent increments. Annual enrollment in the program is required in order to receive margin protection. The final rule also provides improved risk protection for dairy farmers that pay premiums to buy-up higher levels of coverage by clarifying that 90 percent of production is covered below the $4 level even if a lower percentage was selected above the $4 margin.

Earlier this year, FSA gave producers the opportunity to pay their premium through additional options including via their milk cooperative or handler. This rule facilitates those options and also clarifies that the catastrophic level protection at $4 will always cover 90 percent of the production history, even if a producer selected a less than a 90 percent percentage for the buy-up coverage.

Assuming current participation, had the Margin Protection Program existed from 2009 to 2014, premiums and fees would have totaled $500 million while providing producers with $2.5 billion in financial assistance, nearly $1 billion more than provided by the old Milk Income Loss Contract program during the same period.



 USDA Announces Improvements in Dairy Margin Protection Program

 Several important improvements in the new safety net program for dairy farmers were announced Tuesday by the U.S. Department of Agriculture, following recommendations made to the agency by the National Milk Producers Federation to enhance the value of the dairy Margin Protection Program (MPP).

“We very much appreciate these steps by USDA to implement administrative changes that will improve the program’s usefulness to dairy farmers,” said Jim Mulhern, president and CEO of NMPF.  “USDA is constrained in what it can do to strengthen MPP, but the program must continue to evolve based on the experiences of NMPF’s members and others in the dairy industry.”

Since MPP’s enactment in 2014, NMPF has worked with USDA to make the program a more flexible and effective national safety net for all of America’s dairy farmers. Mulhern said the program remains a work in progress, given the challenging farm milk price situation facing dairy farmers in 2015 and this year. “We will continue to work with USDA and the Congress to further improve and strengthen the program’s effectiveness,” he said.

One change announced by USDA today will ensure that all farms enrolled in the MPP will receive catastrophic coverage at the basic $4 per hundredweight margin level on 90% of their production history – with the ability to purchase buy-up coverage at less than 90% of their history.

“Decoupling coverage options under MPP improves the ability of the program to offer effective risk management options to dairy farmers,” said Mulhern.

Mulhern anticipates that decoupling the coverage options will increase dairy farmer use of the program by not reducing benefits to farmers who elect to purchase supplemental coverage, and by providing more flexibility in coverage design. For $100 a year, dairy producers receive basic $4 protection that covers 90% of their milk production. At higher premium levels, farmers can protect from 25% to 90% of production history with margin coverage levels from $4.50 to $8, in 50 cent increments.

This change is effective for the current 2016 coverage year. While a majority of farmers using the program in 2016 are protected at the $4 level, for those who bought up a higher level of margin, but did not cover 90% of their milk production, this change ensures that they are still receiving catastrophic protection on the maximum level of production allowed by the MPP.

The USDA also announced a rule change to allow a farm’s production history to be restructured in order to accommodate new family members joining a particular dairy operation. This will accommodate the intergenerational transfer of production history for children, grandchildren, and their spouses to join a dairy operation.  Any dairy operation already enrolled in MPP that had an intergenerational transfer occur will have an opportunity during the 2017 annual coverage election period to increase the operation’s production history up to 4 million pounds per year.

The next enrollment period begins on July 1, 2016, and ends on Sept. 30, 2016.  Each participating dairy operation is authorized one intergenerational transfer at any time of its choosing until 2018.

“This measure will help younger farmers, as they become part of a multi-generation dairy operation, to more fully use MPP.  That will help families keep their farms into the future,” Mulhern said.

The rule released today also codifies a policy change made earlier this year giving dairy farmers the opportunity to pay their premium through additional options, such as a periodic milk check deduction handled by their cooperative.



Rabobank Global Dairy Quarterly Q1 2016:  Dairy Demand Fragile… but Growing

The global dairy market outlook will remain weak throughout 2016, but with more upward pressure on prices as we head into 2017, according to the Rabobank Global Dairy Quarterly Q1 2016 report.

Global dairy commodity U.S. dollar prices have continued to stumble along a market floor largely determined by the level of EU intervention support. The short-term outlook remains pessimistic. In the face of a cripplingly long price trough entering 2016, production growth in the world’s milk production regions has continued to slow.

“Looking forward, the news is by no means all bad for the dairy industry,” says Kevin Bellamy, Rabobank’s Global Dairy Strategist. “With the exception of Brazil – gripped by the worst recession in a generation – Rabobank sees dairy consumption continuing to grow in Asia, as well as in the U.S. and EU.” Rabobank expects that, throughout 2016, slowing production growth will be matched by slow, but steady consumption growth in most main export regions.

Regional outlook
•            In Europe, low farmgate prices will mean production growth will slow as farmers focus more on cost-saving than expansion. However, while European production growth will moderate, production levels will not fall, requiring the world market to find a new pricing balance.
•            The 2015/16 season production in NZ will be higher than expected due to increased summer rainfall.
•            U.S. farmgate prices are likely to move down in response to weakening trade balance and growth in inventories.
•            Worse-than-expected production in 2H 2015 has led us to cut our China production forecast for 2016.
•            Production continues to contract in Argentina and Brazil, as very high feed costs keep farmers' margins under intense pressure.
•            The current season will be mostly break-even for Australian producers, while margins will also be tight.



La Nina or El Nino – Both Affect Growers’ Nitrogen Investments

 As growers prepare for planting, they will be anxiously checking the weather forecast. Midwest growers have experienced wet weather this winter, but El Nino has the potential to bring dry conditions throughout the Corn Belt this growing season.

Weather is one of the biggest factors affecting nitrogen availability. Both wet and dry conditions contribute to nitrogen loss. “With the wet winter, the soil will be more active,” said Matt Werner, technical development manager at Verdesian Life Sciences. “That means there are more nutrient transformations happening in the soil, which means ammonium is turning into nitrates and increasing the potential for any fall-applied nitrogen to be lost to the environment.”

El Nino is currently underway and affecting climate across the U.S. According to the National Oceanic and Atmospheric Administration (NOAA), the effects of each El Nino event vary, but follow a similar pattern. The Pacific jet stream tends to be farther south than normal, while the polar jet stream trends farther north. This leaves the Midwest between those two storm tracks, which typically means warmer and drier conditions at planting time.

“Drier weather is usually not our friend because it means our crops might not only have limitations with their nutrients but, due to the lack of water, they might have difficulties with nutrient uptake. Growers can protect their nitrogen if it’s going to be laying on the soil for a long period of time with a nitrogen manager product like NutriSphere-N,” said Werner.

The current El Nino event is in the process of weakening and the NOAA predicts that El Nino will be neutral by early summer, which means growers can expect a return to wet weather. A rainy season brings more opportunity for nitrogen loss through leaching.

NutriSphere-N® Fertilizer Manager protects nitrogen for 10-12 months, so nitrogen is kept in an available form for the plant to use, regardless of application timing. Plus, NutriSphere-N protects against all three forms of nitrogen loss: volatilization, leaching and denitrification.

“NutriSphere-N is a long-chain polymer that slows the conversion of ammonium,” said Werner. “The ammonium form requires less energy for plants to use, and it’s more stable in the soil, so less prone to loss. The longer you can keep that nitrogen in the ammonium form, the higher your yield potential will be. When you use NutriSphere-N, your plant has that ammonium form available when it most needs it.”

Werner notes that growers need to use all the best nutrient management practices available to protect both their bottom line and the environment. Verdesian was recently awarded a 4R Nutrient Stewardship Program partnership. The 4R program stresses the importance of applying nutrients at the right source, right rate, right time and right place.

“You can use a nitrogen manager, apply prescribed amounts of nitrogen, and you can split apply instead of applying everything up front. Especially if you’re broadcasting UAN or urea, nitrogen managers like NutriSphere-N are a nice fit,” Werner says. “And then, of course, any way we can incorporate that nitrogen once it’s applied. These are all good methods to minimize nitrogen loss and reduce our effect on the environment.”



New Fungicide Helps Great Plains Growers Maximize Corn, Wheat Yields

Bayer announces the 2016 approval and registration of Absolute® Maxx fungicide by the Environmental Protection Agency (EPA). The fungicide is currently registered in Nebraska, Kansas, Oklahoma, Texas, Colorado and South Dakota. Absolute Maxx is designed to give growers in the Great Plains a new tool for disease protection to promote all-around plant health and maximize yield potential in corn and winter wheat.

Absolute Maxx contains two chemistries, a powerful triazole and a strobilurin, that enables plants to stay greener longer, resulting in higher yield potential. These chemistries work together to control disease through multiple modes of action, which help reduce the likelihood of the development of disease resistance. The active ingredient in Absolute Maxx also initiates changes in corn and wheat plants to promote increased photosynthetic efficiency during conditions of moisture stress.

Effective applications on corn using Absolute Maxx are recommended at VT/R1 to limit major fungal diseases such as gray leaf spot, southern rust, northern corn leaf blight and anthracnose leaf blight. In wheat, applications should begin with the first signs of disease or when the flag leaf is emerging (T2) to control rust and other leaf diseases. Absolute Maxx brings an added benefit to growers with application flexibility allowing use of chemigation, aerial or ground application.

“The introduction of Absolute Maxx fungicide to corn and wheat growers in the Great Plains states will be instrumental for operations looking to limit yield-reducing diseases,” said Thorsten Schwindt, Fungicides Product Manager for Bayer. “With more active ingredient than most fungicides at the recommended rate, we feel that Absolute Maxx gives growers a great opportunity to ensure their crop protection programs effectively limit disease and maximize yield potential without breaking the bank.

“In field trials on wheat, Absolute Maxx has shown improved stripe rust management, with growers seeing a 3 bu/A average yield lift,” added Schwindt. “Additionally, 2015 trials using Absolute Maxx in corn were equally effective, with yield increases in some instances beyond 20 bu/A.”

With the introduction of Absolute Maxx, Bayer strengthens its commitment to provide proper stewardship in disease management by offering growers effective products that contain multiple modes of action. In doing so, Absolute Maxx will help growers prevent the progression of disease resistance in crops.